Honestly if Nintendo wanted to cut the bullshit with gimmicks and just focus on power they could still get a pretty damn powerful chip. Chipsets are not what make consoles expensive and they scale down in cost fast if you choose your components wisely (ie: stay away from exotic parts that can only be ordered from one vendor, like Wii U's eDRAM that only Renesas can make ... and now Sony owns them).
The Vita is somewhere about half way between a PS2 and PS3 .... by 2016, mobile tech will start to inch into the "half way between a PS3 and PS4" territory, and since the home version wouldn't be beholden to the same TDP limits as the handheld (as it plugs into a wall) ... it could be a pretty powerful little console.
Maybe it won't win a dick measuring contest with the PS4, but Nintendo likely isn't interested in that anyway.
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